China Railway Group said on Wednesday it plans to set up a joint venture to invest in a copper and cobalt mining project in Congo that needs total investment of $2.9 billion.
In a filing with the Shanghai stock exchange, China Railway Group said it would be responsible for providing loans and other financing amounting to $1.833 billion, including $550 million zero interest loans, for the project. The investment requires approvals from authorities in China and Congo, it said.
China Railway plans to have a 43 percent stake in the joint venture, Societe par Actions a Responsabilite Limitee, which would have a registered capital of $100 million, the statement said.
The rest of the investment vehicle would be held by several Chinese and Congolese firms, it said.
The Congolese government has promised to supply no less than 10 million tons of copper in addition to cobalt associated with the copper production from the project to Chinese parties involved in the venture.
The project has a proven copper reserve of 6.8 million tonnes and cobalt reserve of 420,000 tonnes, it said.
China Railway raised $5.5 billion in a dual Shanghai and Hong Kong listing late last year, attracting strong investor interest as it benefits from massive infrastructure spending in China and expansion overseas.